Question

I have 6 federal student loans currently in deferment. I'm in the process of extending that deferment due to economic hardship. When I spoke with with Sallie Mae, they asked me if I'd like to make interest-only payments. Obviously, this would help keep the principle at or about where it is at now. But I got to thinking... since my payment history is the worst part of my overall score right now, if I made interest-only payments, would these count as payments toward helping to improve my payment history?

All Responses

I had to check with my friend at Crest Student Loan Consolidation and she said it would depend on wether or not Sallie Mae reports the payments or not. If they do, then it should help. It's a good idea anyway, because otherwise your interest will add up. Have you tried to get an Income Based Repayment Plan? If not, call my friends at Crest at 469-619-0644 and they can see if you qualify, no cost or obligation to find out. Best of luck!

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